On Nov. 19 the MoF has delayed further offering of reserve bonds until December. Without these instruments, UAH proceeds almost halved. FX-denominated borrowings fell, too.
UAH military bonds were 5x oversubscribed, but there was no competition, and the MoF could not decrease interest rates, as the MoF did for reserve securities. Therefore, cut-off and weighted-average rates remained steady at 15.2% and 16.19% for 1.5 and 2.4-year bills.
Regular three-year and USD-denominated instruments received bids below the cap. Therefore, the MoF accepted all bids in full without changes in interest rates.
The MoF paused reserve bond placements until December when it can accurately estimate uncovered budget needs for the remainder of the year. Therefore, next week, the MoF will offer the same set of bonds, which should allow the rollover of all debt redemptions in November.
